Empirical Characteristics,Theoretical Explanation and Policy Choice of Middle Income Trap
Author(s): Zhang Ping
Pages: 49-54+5-6
Year: 2015 Issue: 6
Journal: International Economic Review
Keyword: 中等收入陷阱; 全要素生产率(TFP); 干预性体制;
Abstract: The empirical characteristics of Latin American countries falling into the middle income trap include:First,the State intervention fails in economic restructuring in the middle-income stage;second,in terms of technological advancement,innovation fails to increase the contribution of total factor productivity;third,excessive income distribution gap causes social unrest;last but not least,the government fails to properly handle financial shocks,leading to currency,banking and debt crises and drastic economic fluctuation.Most mid-income countries used to actively adopt structuralism and succeed in increasing their incomes.China’ s government intervention and fostering of strategic industries have greatly pushed its economic growth,but government intervention may also lead to the problem of path dependence.Therefore,to successfully restructure its economy,China should reform its interventionist approach in managing its economy and prevent external financial shocks to encourage innovation and push stable economic growth.
Pages: 49-54+5-6
Year: 2015 Issue: 6
Journal: International Economic Review
Keyword: 中等收入陷阱; 全要素生产率(TFP); 干预性体制;
Abstract: The empirical characteristics of Latin American countries falling into the middle income trap include:First,the State intervention fails in economic restructuring in the middle-income stage;second,in terms of technological advancement,innovation fails to increase the contribution of total factor productivity;third,excessive income distribution gap causes social unrest;last but not least,the government fails to properly handle financial shocks,leading to currency,banking and debt crises and drastic economic fluctuation.Most mid-income countries used to actively adopt structuralism and succeed in increasing their incomes.China’ s government intervention and fostering of strategic industries have greatly pushed its economic growth,but government intervention may also lead to the problem of path dependence.Therefore,to successfully restructure its economy,China should reform its interventionist approach in managing its economy and prevent external financial shocks to encourage innovation and push stable economic growth.
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